Mobile and cellular phones are the gadgets of future. And the future is not far away! Today’s mobile phone is as powerful and resource rich as a full-scale computer of yester years. This is an omnipotent device having a high-resolution display equipped with addictive games, personalized address book, megabyte data storage, digital camera, picture and video viewers plus an endless list of user-friendly applications. Add a promise of anytime anywhere connectivity and this device holds the power to rule our lives.
The technology that binds a mobile with another mobile is also moving fast. Mobile service providers are quickly moving towards 3G, which is being promised as Nirvana for speed (data rates) and throughput. Gone are the days of GSM with Circuit switched Data that gave a data rate of 14-15 kbps, and GPRS giving 56 Kbps. We are in the age of EDGE (180 Kbps) and progressing swiftly to a truly connected 3G (around 2 Mbps) world.
With good data rates and a reliable connection, video transmission comes high on the wish list for both consumers and operators. Video on demand and other applications based on video are the killer applications for tomorrow (if not today).
I bought a new TV: My Mobile!
When we talk of mass media and Video, we have a four screens viewpoint. This suggests Cinema when projected in movie theatres as the first screen; the second screen is the screen ruled by Soap operas and live sports telecasts. The third screen is more personal and interactive and refers to the computer screen that is generally used for individual and customized viewing. The fourth and most interesting screen is the screen of our ubiquitous mobile phone. Today’s generation M (mobile) would definitely love to see the first two screens on screen four clubbed with the power of screen three.
Although a market for live video on demand or pre recorded video on mobile phones seems lucrative, there are some issues which crop up due to the size / form factor of mobile devices. An action movie, which looks great on a theatre screen, would not make the same impact on a small mobile screen. Similarly a cricket broadcast would not get the same appeal as it generates on a full size television screen.
Imagine watching your favorite soap on the stamp size display of your mobile phone, and you start to understand the intricacies of mobile video. While some pessimists may bring out the infeasibility of the concept, others may see this as a technological prowess that helps catch a television show on the move. Whatever side you belong to, mobile video is fast becoming a reality with multiple operators providing this service.
Opportunity in challenge
Notably, there is a gap between the content provided and the exact requirement of mobile user/viewer. The opportunity lies for content distributors and aggregators to fill in this gap by providing content that is apt for the mobile phone viewing. There are two possible ways to tackle this problem. One approach is to refurbish the existing TV content to have more close shots or slow motion with superior sound. Some software tweaks, zoom and pan individual frames can generate content suitable for a mobile phone. Another approach would be to create content targeting purely the mobile market. Content would be created solely for the mobile platform having a small screen. Animations and Cartoons would be a perfect fit for such an approach.
The second approach though superior, would not be acceptable unless mobile video turns out to be a major market itself. In either case, based on user inputs complete coverage similar to that shown on television could also be available for die-hard full screen supporters. Most mobile phones in market support standard video formats and this content could be made available in all the supported formats.
Lets talk business
Here lies an opportunity for media and production houses to partner with mobile content providers and develop mobile video content. The existing relationships for games and ringtones could be taken a step further to include video as well.
News clips, movie trailers, sports highlights would serve as video-fillers for small chunks of content delivered to cell phones to fill those lonely times when no one is calling, messaging or e-mailing.
There is also a big market for infomercials providing information rich video content on user demand. This could be downloadable or a one time viewing fees can be charged. In another way, the advertiser could pay the carrier fee and the user would get an equivalent of toll free number. Associations between the advertising companies and mobile media firms could change the user perception of advertising.
Custom made content for better viewing on mobile phones would be an instant hit and be able to catch an eye of a larger consumer base.
In a survey for ‘Most Wanted Mobile Service’, Mobile TV along with Voice and location based data featured as the top choices made by respondents. This clearly demonstrates that capability of pure TV content on mobile. A scenario for TV combined with location specific content could definitely hold a key for the future of mobile video.
What’s coming?
India is adding about 2.5 million cellular subscribers a month and would be crossing the 200 million mark by 2008. With compelling content like movie trailers, cricket broadcasts, local and international news; mobile video market has the power to generate huge revenue streams. Millions of messages are sent by consumers just to receive sms alerts for cricket scores, a 2 min video report of the match could prove to be market grab.
A research shows that there would be around 250 million mobile video service customers by 2010 and the content providing industry would grow a rapid pace from the existing $ 200 million to $ 2 billion in 2010. Another survey indicates that consumers are more excited about mobile TV than any other data application till date. Early adoption of services in some markets conforms to these predictions. Huge investments have already been made in 3G technology and some networks in Korea, Japan and Europe already provide video services. Some providers are trying to get this technology to India as well. We have some operators giving EDGE in certain selected circles and India should have a 3G network by the year 2008.
Bottom line…
Video on mobile presents a sizeable opportunity with equally challenging technical and relevant business issues. Operators face the challenge of meeting the customer expectations at an economical price point and still maintain profit margins. While the challenge for mobile content providers is obtaining, packaging and marketing rich video content, which may come at premium for the consumers. Given the potential of TV and video services it is important for all involved players to establish the right technology evolution roadmap and to develop timely relationships with right contenders. Video can definitely be a technology enabler for the future of mobile telephony.
